Test: Joint Ventures - 1 - CA Foundation MCQ

Karim and Rahim enter a joint venture sharing profits in 2:1. Karim purchases goods of Rs. 2,00,000 and Rahim sells goods of Rs. 2,50,000. Karim gets 1% commission on purhase and Rahim gets 5% commission on sales. Find profit on joint venture.

When Memorandum Joint Venture Method is followed. In Books of X, “Joint Venture with Y A/C” will be credited with ________, for amount received by X. 

If separate set of books is maintained and discount is received at the time of purchase of goods then such a discount will be treated as :

When co-ventures initially contribute for a joint venture which account should be debited in case when separate set of books are maintained:

 Following are the characteristics of joint venture except: 

A purchased goods costing 42,500. B sold goods costing Rs. 40,000 at Rs. 50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be:

 Joint Venture Accounting follows which concept:

 A for joint venture with B, purchased goods costing Rs. 2,00,000. B sold the goods for Rs. 2,80,000. Unsold material costing Rs. 10,000 was taken over by A at Rs. 8,000. A is entitled to get 1% commission on purchases. B is entitled to get 2% commission on sales, profit on venture will be:

Which of the following statement is true:

 Joint venture is a ________ Account.

X spending a sum of Rs. 10000 on account of joint venture, will be credited to _______ account in case of the records being maintained in the books of X.: 

For material supplied from over stock by any of the venture, the correct journal entry will be: (In case of Separate set of books of a joint venture)

A bought goods of the value of Rs. 10,000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs. 1000 for freight and insurance. A draws a bill on B for Rs. 10,000. A got it discounted at Rs. 9500. B sold the goods for Rs. 15,000. Commission payable to B, Rs. 500. Find out the profit on venture?

A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:

A and B purchased a piece of land for Rs. 20,000 and sold it for Rs. 60,000 in 2005. Originally A had contributed Rs. 12,000 and B Rs. 8,000. What will be the profit on venture?

R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs. 1,00,000 and spent Rs. 10,000 in sending the goods to M. He also paid Rs. 5000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for 20,000 remaining goods were taken over by him at Rs. 5,000. What will be the amount to be remitted by M to R as final settlement ?

P and Q enter into a Joint Venture sharing profit and losses in the ratio 3:2. P purchased goods costing Rs. 2,00,000. Other expenses of P Rs. 10,000. Q sold the goods for 180,000. Remaining goods were taken over by Q at Rs. 20,000. The amount of final remittance to be paid by Q to P will be:

A and B enter into a joint venture sharing profits and losses equally. A purchased 5,000 kg of rice @ Rs. 50/kg. B purchased 1,000 kg of wheat @ Rs. 60/kg. A sold 1000 kg of wheat @ Rs. 70/kg and B sold 5,000 kg of rice @ Rs. 60/kg. What will be the final remittance?

A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs. 80,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 2,000. B sells goods on behalf of the joint venture and realizes Rs. 1,50,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out A’s share of profit on venture?

A and B enter into joint venture sharing profit and loss equally. A purchase 100 kg of rice @ Rs. 20/kg. Brokerage paid Rs. 200, carriage paid Rs. 300. B sold 90 kg of rice @ Rs. 22/kg. Balance rice were taken over by B at cost. The value of rice taken over to be recorded in joint venture will be:

For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:

A purchased goods costing 2,00,000, B sold 4/5th of the goods for Rs. 2,50,000. Balance goods were taken over by B at cost less 20%.If same sets of books is maintained, find out profit on venture?

 A and B enter into a joint venture to underwrite the shares of K Ltd. K Ltd. make an equity issue of 1,00,000 equity shares of Rs. 10 each. 80% of the issue was subscribed by the public. The profit sharing ratio between A and B is 3:2. The balance shares not subscribed by the public, purchased by A and B in profit sharing ratio. How many shares to be purchased by A.

A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs. 10,000. He pays expenses amounting to Rs. 1,000. V incurs further expenses on carriage Rs. 1,000. He receives cash for sales Rs. 15,000. He also takes over goods to the value of Rs. 2,000. What will be the amount to be remitted by V to A?

 A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?

A purchased 1000 kg of rice costing Rs. 200 per kg. Paid carriage Rs.2,000, insurance Rs.3,000. 4/5th of the same were sold by B at Rs. 250 per kg. Remaining Inventories were taken over by B at cost. The amount of Inventories taken over will be:

If any Inventories is taken over by the venturer, it will be treated as an: